My retirement fund is quite flexible and we can choose how we want it invested from low risk to high risk - cash to equities. Every year we can switch once for free and R250 per switch after that. Currently I am invested in the high risk option. Which technical indicator can I use as a trigger for me to switch to something more low risk? Something like 120/200 day EMA? Obviously I do not want to switch too often.
NO NO NO - I was a trustee on a provident fund for many years and watched some of this switching madness...it never really worked...timing markets is insane for 99% of pension fund investors. My only comment is hang in on to your "high risk" fund (maybe 60-65% stocks) - in reality it is probably NOT even that high risk as it is probably well diversified and will also have a large cash/bond % in order to be in line with regulations. You will thank me in time!
your asset allocation needs to reflect the combination of asset classes that will provide you with the best opportunity to reach your goals established in terms of your longer term capital needs....( Reg 28 accepted)